German auto parts supplier Bosch plans to invest nearly $38 million into HCFA, while Chinese home meal products brand Guoquan Food has raised $52.6 million in a Hong Kong IPO.
Bosch, HCFA to set up $16.5m JV
Bosch is eyeing a 5% stake in Shanghai-listed Zhejiang Hechuang Technology for 276 million yuan ($37.9 million), according to a company announcement.
Zhejiang Hechuang Technology, which also goes by the acronym HCFA, engages in industrial automation control core components production, targeting original equipment manufacturers (OEM) as its major customers.
The strategic investment will bring the two parties together to offer the “best price-quality ratio” industrial automation control parts to the China market, per the release. Meanwhile, Bosch and HCFA will set up a 120-million-yuan ($16.5 million) joint venture to engage in the R&D, production, and sales of the related products.
Founded in November 2011, the Quzhou-headquartered firm has local R&D and sales offices across the country as well as overseas outlets including India, Turkey, Russia, Malaysia, Thailand, Singapore, Italy, Spain, Brazil, Vietnam and Egypt.
Jinding Capital among cornerstone investors in Guoquan IPO
Guoquan Food, which offers ready-to-eat, at-home hotpot and barbecue products, has raised HK$ 411.4 million ($52.6 million) in its Hong Kong initial public offering, according to an exchange filing.
At an offer price of HK$5.98 per offer share, the firm issued 68,802,800 overseas listed shares under the IPO, the filing showed.
Guoquan Food, which is known for its supermarket chain Guoquan Shihui, operated a nationwide network of 9,844 retail stores in China as of April 30. The firm has received backing from investors including Tiantu Capital, IDG Capital, Vision Knight Capital, and Buhuo Ventures prior to going public.
The net proceeds of the IPO, after deducting the listening expenses, stood at approximately HK$ 356.5 million ($45.6 million), assuming that the overallotment option is not exercised.
The cornerstone investors such as Jinding Capital, COFCO Capital Fund and Hengshun Group have subscribed to around 53.78% of the total offered shares under the global offering, per the filing.